Have you ever wondered what it takes to own your very own bodaboda motorbike here in Kenya? Well, it could be that you are tired and frustrated of working under somebody or that you simply want to expand your horizons. Whichever the case, the good news is that it is possible to get the support you need from new and second-hand motorbike loan companies.
Previously, it used to be rather difficult to access loan facilities for motorbikes as most bodaboda riders were considered high-risk lenders. Fortunately, things have changed in a great way and these days all you need to do is meet a few basic requirements and you will be speeding off with a motorbike you can proudly call your own.
Whether it be a spanking new nduthi or a reliable second-hand one from your fellow riders, the following article summarizes some of the options that are in store for you. Read on.
Companies That Provide Motorbike Loans (New & Used)
Can’t wait to lay your hands on the keys to your dream two-wheeled ride? The following is a curated list of the friendliest motorcycle loan providers you can work with.
| Car Company | New Bodaboda | 2nd-hand Bodaboda |
| MOGO | Yes | Yes |
| Watu Africa | Yes | Yes |
| Progressive Credit | Yes | Yes |
| Mwananchi Credit | Yes* | Yes* |
| Platinum Credit | Yes** | No |
*Only available in Mombasa City County and its surroundings
**Only available to civil servants, county officials and TSC members
Table of Contents
MOGO Kenya
MOGO is one of the most popular non-bank lenders out there currently. The company is known for offering excellent customer support. They also have carved a niche for themselves by constantly launching products that resonate with the needs of the Kenyan financial landscape. This makes them perhaps the best lender to work with especially during these tough times.
The Bodaboda loans by MOGO are so friendly that all you need to do is place a 20% downpayment for a brand-new bike. In return you will be expected to repay the loan in instalments from as low as Ksh259 per day.
What about their second-hand bodaboda loans? Well, you only need to raise a deposit of between Ksh15,000 – Ksh25,000 and they will consider your application. Other requirements for getting your MOGO loan processed include:
- A copy of your national ID card
- KRA PIN
- Be 20 – 60 years old
- 6 months Mpesa statement
- 1 Guarantor (with an ID)
- Be a registered bodaboda stage member (only if the bike is for bodaboda use)
We’ve all got to give it up to MOGO for being so flexible with their product offerings. They have played a major role in transforming the sector by introducing second-hand motorbike loans essentially helping us enjoy access to cheaper-priced motorbikes.
The company also offers Logbook loans against motorbikes and cars as well.
Pros
- MOGO is a highly reputable loans provider
- Wide branch network across all strategic places in Kenya
- Excellent customer service team
- Regular special offers available at their physical branches
- Reasonable repayment terms
- Super-fast processing of loans
Cons
- Their social media customer support is partly handled by bots, it takes a while to be handed over to a human attendant
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Watu Africa
Watu is another stable and well-known lender offering new and second-hand bodaboda loans. So, the next time you hear your colleague is disposing of their TVS or Bajaj, you can always take advantage of this and save huge sums of money. All you need to do is link up with Watu and they will be there to help.
Also, the lender has a huge database of second-hand motorbikes some of which come from their repossessions. If you have a good eye for detail, their second-hand bodabodas can easily be the saving grace your hustle badly needs.
But what are their terms? You might be wondering. Well, Watu Africa allows you to choose from a wide variety of bodaboda brands namely Bajaj, TVS, Skygo, Piaggio, and Haojin among others. They also are open to the idea of financing electric bikes which is timely given the rising cost of fuel and the pressure from the government for a transition to green energy.
Looking for a motorbike loan from Watu Africa? You only need to pay a deposit of Ksh15,000 for a brand-new bike or Ksh23,000 for a second-hand one. That’s easily the trickiest hurdle you’ll need to overcome but the assumption is that you have been saving up for this venture.
Other than the initial deposit, the following requirements are key to qualifying for a second-hand motorbike loan at Watu:
- Have a national ID card
- One guarantor with a national ID card
- KRA Pin certificate
- Safaricom line that has been in use for at least 6 months
- Good credit history
Once your loan application is approved you will have 12 to 18 months to repay it in small and flexible instalments. As such, this gives you the opportunity to grow your hustle even as you get to clear the balance. Of course, financial discipline is key to achieving this.
Pros
- Reasonable loan terms
- Long repayment period
- Good customer support especially online
- Wide branch network across most of the country
- Fast turnaround time when it comes to loan processing
- Watu is a trusted brand in providing loans to those at the bottom of the pyramid
Cons
- The company is really strict with its repayments (good financial discipline is key on your part)
Progressive Credit
Yet another well-known lender that has recently ventured into the world of new and second-hand motorcycle loans is Progressive Credit. With over 24 physical branches and a reputation that spans several years this sounds like a company we all can rely on. But just how reliable are their loan terms?
For starters, the company has a minimum loan limit of Ksh100,000 meaning whether you are purchasing a brand new or locally used bike it has to be valued within that range.
One thing we absolutely love about this company is that it is fully Kenyan owned. It also has been in operation since 2011 making it probably one of the oldest lenders that target the bottom of the pyramid (also known as high-risk lending).
Assuming you intend to borrow a second-hand boda loan from Progressive Credit, you will need to part with a deposit of Ksh10,000 and also meet the following requirements:
- Have a national ID card
- Have 1 guarantor with a national ID card
- Good credit score
- KRA PIN number
- 6 months Mpesa statements
As you can see, the company’s terms of lending are quite reasonable and friendly.
The only problem is that this is a much smaller company compared say to MOGO or Watu Credit. For instance, much as they have over 20 branches, most of them are located within Nairobi and the populous Mount Kenya region. They lack representation in areas like North Eastern, Lower Eastern, and Upper Eastern all of which have immense economic value to the nation. Hopefully, they’ll be expanding their branch network to those regions soon.
Pros
- Reasonable lending terms and conditions
- Fully Kenyan owned
- Has been in the market for more than 10 years now
- Above-average customer support via online and mobile phone
- Good branch network around Nairobi and Mt Kenya areas
- Relatively fast loan processing speed
Cons
- They lack branch presence in key parts of the country
- Their customer support could be more detailed in their responses (room for improvement)
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Mwananchi Credit
Mwananchi Credit started its operations in Nairobi in 2010 as Mwananchi Microlink Ltd before rebranding to Mwananchi Credit Limited 2 years later. So, it is safe to say that it is one of the oldest lenders that target low-income people – perhaps a testament to its resilience in this highly competitive space.
Now, although Mwananchi credit’s adverts are commonly associated with grandeur and opulence, the company does in fact have a soft spot for bodaboda people.
Their boda loan product enables you to buy a motorbike of your choice and then repay it in installments starting from as low as Ksh300 a day.
The repayment period is usually 12 months although it is possible to negotiate for a 48-month contract. What’s more, there is no minimum repayment period here meaning you can always repay your loan at any time without having to deal with early redemption penalties.
So, what are the loan terms for availing Mwananchi Credit’s financial products? Here are the details:
- 3 guarantors all with national IDs (1 of them a relative)
- A copy of your national ID card
- KRA PIN certificate
- 6-month MPESA statement
- A deposit of at least Ksh15,000
Unfortunately, Mwananchi Credit is quite conservative with whom they extend their boda loans to. For instance, at the time of compiling this review, the company was only offering bodaboda loans to borrowers in Mombasa and its surroundings. They didn’t have a facility available for the rest of the country. Yikes!
So perhaps this is something you need to keep in mind before approaching them.
Pros
- Flexible loan repayment contracts
- Friendly and prompt customer support
- Loans can be repaid either on a weekly or daily basis
- Also offers Tuktuk loans
- Reasonably wide branch network
Cons
- Their boda loans were only available in Mombasa at time of writing this
- Lacks branches in North Eastern and Upper Eastern regions
- No lending for second-hand motorbikes
Platinum Credit
If you are looking for a company that has remained stable for the longest time you have got to consider Platinum Credit. The company has been around since 2003 – yup, you read that right. How old were you then?
Well, Platinum Credit is a market leader in offering SME finance. And the best part is that they do also offer asset financing for brand new motorbikes. Unfortunately, they don’t offer loans for second hand motorbikes.
Another thing you need to note about Platinum Credit is that they only extend loans to civil servants, county government employees, and TSC members. Perhaps this is to cushion themselves from the murky waters of the Kenyan financial landscape.
So, the point is, if you have a stable government job and are looking for a quick motorbike loan facility, these are the guys you need to work with. With 24/7 operations and the ability to process loans in under 24 hours, this has got to be one of the most reliable lenders you can ever work with.
The terms of availing a motorbike loan from Platinum Credit are as follows:
- Lending only available for brand new motorbikes
- Your payment information & payslip
- Current passport photo
- National ID card
- 6-month Mpesa statement
- Guarantors
- KRA PIN certificate
Overall, Platinum Credit is a great place to borrow boda boda loans from. Unfortunately, they only work with those in government employment something which cuts off the vast majority of the hustlers trying to make ends meet out there.
Pros
- Fast loan processing speeds
- Excellent and professional customer support
- Flexible loan repayment terms and conditions
- Nation-wide branch network
- Also offers personal loans
Cons
- Only lends to civil servants, county government employees & TSC members
- They don’t lend money for buying second-hand bikes
Frequently Asked Questions on Motorbike Loans
Got some burning questions about motorbike loans in Kenya? This section provides you with answers to commonly asked queries.
Are there banks that offer motorcycle loans in Kenya?
There are many banks that work with bodaboda riders in the country. Equity Bank is one of those. The bank has risk-based lending which enables it to tailor your loan product based on your ability to repay it.
Other banks that offer lending facilities for motorcycles include NCBA and KCB Bank.
All banks offer lower interest rates than non-bank lenders. However, they are also more stringent in their loan approval process.
Can you make monthly payments on a motorbike loan?
Most banks will allow you to make monthly payments based on your income abilities. However, most of the time such an option is availed to those with regular monthly salaries.
How much is a motorcycle loan repayment per month?
The costs vary widely from on lender to another and also based on the terms of the loan. We have seen bodaboda repayments cost anywhere from Ksh7,500 to Ksh15,000 depending on what bike you get and how long you’re willing to repay the loan. Shorter repayment periods require higher monthly repayments.
Conclusion
In the world of bodaboda business, the journey of finding the ideal bike can be a thrilling adventure. But whether you’re craving for a brand-new bike or simply looking to embrace a reliable second-hand gem, we trust the insights provided in this article will come in handy.